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I just checked my Windows 7 installation... The amount of space taken up by drivers is negligible. At the most.. several extra MB of space which is nothing.

Installing the latest nVidia graphics driver is fine and in fact, recommended. But why are you trying to fix something that isn't broken? Do you really need to reformat to NTFS? If you're forced to reformat because you need a larger Windows XP partition (larger than 32 GB) I can understand that. Otherwise NTFS offers no advantage other than the fact it's a journaled file system and can recover from errors better than FAT-32.

You may be opening up problems for yourself by reformatting and reinstalling XP.

If you don't want to use your Leopard DVD to install drivers, just reinstall Windows first. Then go hunting on the net for drivers. Remember that some of your Apple hardware is proprietary which means you'll be forced to use Apple drivers. Which are not available as separate downloads.